December 23, 2004 by Canadian Underwriter
Kingsway Financial Services and its U.S. holding company, Kingsway America Inc., have had their ratings affirmed by Dominion Bond Rating Service, based on its consistent execution of strategy and strong underwriting performance. Specific note was taken of improvement in the Canadian operations, which posted a 95.5% combined ratio for the first nine months of 2004. Also, conservative reserving practices should lead to less volatile earnings in the future, the rater notes.
Standard & Poor’s has affirmed the “AA-” counter-party credit and financial strength ratings of Toa Reinsurance Co. of America, although the ratings carry a negative outlook. The company strong capital adequacy, operating performance, growth prospects and ties to its Japanese parent are all positive factors, but are offset by its modest scale and some adverse loss development dragging earnings.
Swiss Reinsurance Co. Canada has had its “A+” financial strength rating affirmed and been issued an “aa” issuer credit rating by A.M. Best. Both ratings carry a stable outlook. Strong operating performance and market profile led to the affirmation, says Best, as well as the reinsurer’s support from its Zurich-based parent.